Correlation Between ODP Corp and Miniso Group
Can any of the company-specific risk be diversified away by investing in both ODP Corp and Miniso Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ODP Corp and Miniso Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ODP Corp and Miniso Group Holding, you can compare the effects of market volatilities on ODP Corp and Miniso Group and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ODP Corp with a short position of Miniso Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ODP Corp and Miniso Group.
Diversification Opportunities for ODP Corp and Miniso Group
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ODP and Miniso is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding ODP Corp and Miniso Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miniso Group Holding and ODP Corp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ODP Corp are associated (or correlated) with Miniso Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miniso Group Holding has no effect on the direction of ODP Corp i.e., ODP Corp and Miniso Group go up and down completely randomly.
Pair Corralation between ODP Corp and Miniso Group
Considering the 90-day investment horizon ODP Corp is expected to generate 0.96 times more return on investment than Miniso Group. However, ODP Corp is 1.04 times less risky than Miniso Group. It trades about -0.04 of its potential returns per unit of risk. Miniso Group Holding is currently generating about -0.11 per unit of risk. If you would invest 2,235 in ODP Corp on November 9, 2024 and sell it today you would lose (76.00) from holding ODP Corp or give up 3.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ODP Corp vs. Miniso Group Holding
Performance |
| Timeline |
| ODP Corp |
| Miniso Group Holding |
ODP Corp and Miniso Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ODP Corp and Miniso Group
The main advantage of trading using opposite ODP Corp and Miniso Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ODP Corp position performs unexpectedly, Miniso Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Miniso Group will offset losses from the drop in Miniso Group's long position.| ODP Corp vs. Leslies | ODP Corp vs. Sally Beauty Holdings | ODP Corp vs. 1 800 FLOWERSCOM | ODP Corp vs. Caseys General Stores |
| Miniso Group vs. Leslies | Miniso Group vs. Sally Beauty Holdings | Miniso Group vs. ODP Corp | Miniso Group vs. 1 800 FLOWERSCOM |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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